Survey Finds Incentive Travel Budgets Stable

A 2006 incentive travel user survey by Incentive, an industry trade publication, provides a snapshot of current practices and trends. The publication last surveyed its readers on these elements three years ago. Its most noteworthy finding, in light of the new scrutiny of incentive travel expenditures, is that 63.2 percent of the 171 respondents expect that procurement or purchasing departments will have an impact on incentive travel decisions and budgets beginning in 2007. Here are other results:

Travel Profile

Number of employees

Average

1,128

Less than 100

49%

100-499

20.9%

500-999

6.5%

1,000-4,999

10.6%

>5,000

13%

Annual incentive travel expenditures

Average

$392,825

28.9%

$50,000-$99,999

13.3%

$100,000-$249,999

15.8%

$250,000-$499,999

9%

$500,000-$999,999

9.2%

$1 million-plus

23.8%

Budget change since last year

No change

45.2%

Up 5%-15%

31%

Up 16%-25%

7.6%

Up 26-50%

2.8%

Up >50%

0.7%

Down 5%-15%

8.1%

Down 16%-25%

2.6%

Down 26%-50%

1.1%

Down >50%

0.9%

Budget projections for 2007

Anticipate budget increase

48.4%

Anticipate no change

43.1%

Anticipate budget decrease

8.6%

Types of incentive travel used

Both group and individual

56.6%

Group only

28.1%

Individual only

15.3%

Typical group size

Average

88

<25

27.2%

25-49

19.3%

50-99

18.6%

100-199

19.3%

>200

15.6%

Trip winners

Internal salespeople

65.9%

Non-sales employees

39.5%

Dealers/distributors

39.5%

Note: Some respondents indicated more than one group is included in their programs.

Program objectives

Increase sales

69.6%

Build morale

55.1%

Improve employee loyalty

44.9%

Build customer loyalty

42.6%

Foster teamwork

41.9%

Increase market share

41.3%

Improve customer service

37.3%

Sell new accounts

32.9%

International destinations

Caribbean, not including Bermuda

41.3%

Mexico

40.4%

Western Europe

29.1%

Bermuda

19.5%

Eastern Europe

15.9%

Australia/New Zealand/Pacific Islands

14.7%

Asia

10.6%

Africa

8.2%

Note: Many respondents indicated multiple destinations are used each year during the course of their programs.